VECTION TECHNOLOGIES LTD — Capital/Financing Update 2019

Aug 19, 2019

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ASX RELEASE

ServTech Business Update - $1M milestone reached

20 August 2019 | Perth, Australia

ServTech Global Holdings Ltd (ASX:SVT) ( ServTech or the Company ), a multinational software company that creates Virtual Reality ( VR ) & Augmented Reality ( AR ) solutions, is pleased to provide a business update on the acceleration of its client growth and distribution partnerships.

Highlights

• ServTech builds strong sales momentum during the first two months of FY20 , with clients including Volvo Car Italy, Alfacod and Innse Berardi

• Contracted revenue for financial year 2020 stands at ~A$1,000,000[1] as at 20 August 2019

• A$1M milestone achieved within first 2 months of FY2020

• Broad and diverse client base, across eight industry segments and three continents

Direct Enterprise Sales

ServTech increased its pipeline of contracted sales to ~A$1,000,000 during the first two months of the financial year 2020, across key industries and geographical regions.

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ServTech’s industry agnostic software solutions have been adopted by key industry segments, with

• Real Estate: 32%

• Automotive: 29%

• Gaming: 19%

• Logistics: 8%

• ● Furniture: 7%

• Industrial Machinery: 3%

• Consumer Electronics: 1%

• ● Software: 1%

of the total contracted revenue for the current financial year.

1 Exchange rate AUD/EUR of 0.6114 as at 16 August 2019 (Reserve Bank of Australia)

ServTech continues its diversification strategy into the European market , with ~50% of revenue being currently generated from European clients.

The Company continues to expand its distribution across Europe with ongoing negotiations with key commercial partners and clients .

Direct sales wins are in various stages of going live, with revenue being recognised in both the September and December quarter.

Direct Enterprise Sales Ongoing Negotiations

ServTech continues to expand its Virtual Reality ( VR ) and Augmented Reality ( AR ) software applications across diverse industries.

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ServTech is currently in discussions with companies operating in industries such as Fashion, Pharmaceutical, Veterinary, Medical and Training , that have recognised the agnosticity of VR & AR industrial applications .

ServTech recognises these industries as strategic to position its VR & AR software at the core of its clients industrial activities , generating increased productivity and decreasing costs.

ServTech’s wholly owned subsidiary, Vection Italy Srl ( Vection ) has registered a ~150% increase in contracted sales and ongoing negotiations pipeline during the 1 January 2019 - 31 July 2019 period, compared to the previous corresponding period.

Corporate Snapshot

Shares on Issue	657 M
Directors and Management	200 M (30%)
Top 20 Shareholders (Including Directors & Management)	496 M (76%)
Cash at Bank (at 30 June 2019)	$794 K
Debt	$0
Market Capitalisation (at $2¢ per share)	$13 M

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Gianmarco Biagi, Managing Director of ServTech, commented:

“ServTech’s objective is to establish itself as the virtual reality and augmented reality leader in industrial applications across diverse subsets of industries and market segments.”

“We are pleased to have commenced the financial year building a strong sales momentum, underpinned by a solid pipeline of ongoing negotiations across key clients in strategic industries. We are looking forward to keeping the market updated on further progress on the Company and its operations.”

For more information: Media enquiries:

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Bert Mondello

Bert Mondello MMR Corporate Services Non-Executive Chairman Henry Kinstlinger +61 8 6380 2555 +61 2 9251 7177 bmondello@regencycorporate.com.au media@mmrcorporate.com

About ServTech (ASX:SVT):

ServTech is a multinational software company that makes Virtual Reality (VR) & Augmented Reality (AR) software services for the engineering, manufacturing, architecture, construction & education industries. ServTech operates on an Enterprise business model based on bespoke fees and on a Software as a Service (SaaS) business model based on recurring subscription revenue. www.servtechglobal.com.au

Forward Looking Statements:

This announcement may contain forward-looking statements that involve risks and uncertainties. Indications of, and guidelines or outlook on, future earnings, distributions or financial position or performance and targets, estimates and assumptions in respect of production, prices, operating costs, results, capital expenditures, reserves and resources are also forward-looking statements. These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions and estimates regarding future events and actions that, while considered reasonable as at the date of this announcement and are expected to take place, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, the directors and management. The Company cannot and does not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this announcement will actually occur and readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are subject to various risk factors that could cause actual events or results to differ materially from the events or results estimated, expressed or anticipated in these statements.

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